Middle East, Africa hotels report mixed May performance

Ramada Manama City Centre, Manama, Bahrain. Photo credit: Wyndham Hotels and Resorts

Hotels in the Middle East reported negative performance in May 2018 while hotels in Africa recorded growth across three key performance metrics, according to data from STR.

The Middle East's hotels saw occupancy drop 10.7 percent to 57.0 percent in May 2018, compared to the same period last year. RevPAR fell 9.1 percent to $86.45 in response, despite a minor uptick of 1.7 percent in ADR to $151.62. 

Africa's hotels recorded better performance results for the month. The region managed to report a 4.6-percent increase in ADR to $109.67, despite a 1.7-percent drop in occupancy 54.4 percent. RevPAR jumped 2.8 percent in response to $59.73, compared to May 2017.

FREE DAILY NEWSLETTER

Like this story? Subscribe to Operations & Technology!

Hospitality professionals turn to Operations & Technology as their go-to source for breaking news on guestrooms, food & beverage, hospitality and technology trends, management and more. Sign up today to get news and updates delivered to your inbox daily and read on the go.

Bahrain

Bahrain reported only 14 days with RevPAR growth in May, most of which came at the end of the month. The Ramadan calendar shift along with a surplus in new supply, which grew 9.1 percent, contributed to the country’s year-over-year performance decline. 

New rooms are likely to continue entering the market. Bahrain currently has 2,184 guestrooms in construction, representing roughly 13 percent of the country’s existing supply. RevPAR for the month plunged 33.9 percent to BHD23.99 as occupancy dropped 24.6 percent to 40.1 percent, and ADR fell 12.4 percent to BHD59.76.

Egypt

Egypt's hotels fared better in May with occupancy growing 9.9 percent to 53.1 percent and ADR increasing 5.7 percent to EGP1,259.36. This was the highest ADR level recorded for any May in the country. 

The 16.2 percent increase in RevPAR to EGP668.40 was the lowest year-over-year change in Egypt since October 2016. However, the rise in RevPAR points to increased tourism and continued hotel performance recovery in Egypt. 

South Africa

A 4.2-percent decrease in demand was the worst for any month in South Africa since January 2015. This decrease along with a 2.2-percent increase in supply, pressured performance levels for the month. The region's hotels reported a 6.3 percent drop in occupancy to 57.1 percent while ADR fell 1.0 percent to ZAR1,108.09. RevPAR decreased 7.2 percent to ZAR632.96 in response.

The capital city of Cape Town reported double-digit declines in occupancy by 14.5 percent to 53.9 percent and RevPAR by 20.2 percent to ZAR700.96. The decline in RevPAR is attributed to the city’s water crisis, which has affected hotel performance.

Suggested Articles

The company promoted Randy Taormina, former area managing director of the Dream hotels in New York City.

Celebrating the hotel company’s 45th year and his 80th on the planet, the owner/operator—and philanthropist—embodies a "hospitality heart."

The Hyatt Centric Reykjavík will not only be the first Hyatt-branded hotel in Iceland, but will be the company's debut the Nordic region as a whole.